I grew up with financially saavy parents. They had normal jobs (teachers) in a low cost of living town in the country side. They may be similar to other folks on this board - they come across as everyday folks who make enough to pay the bills, donate to church but don't treat themselves to anything extravagant. I had some suspicion that they were saving very diligently for retirement - but it was only confirmed recently and I was surprised and happy for them.
Their behavior has rubbed off on me - in mostly a good way. I don't eat out, or buy fancy clothes, etc. But sometimes, I wish I wasn't so influenced by their mindset and I wish I had a better understanding of how to apply my parents methods to the circumstances of my generation. This isn't a formal case study - just want some thoughts on how to balance saving with living an interesting life.
I live on the outskirts of a high-cost of living city (so high cost of living, no public transit options). I'm 29, female, single, and just got a raise as an engineer --> 78k/year - previously at 65k for 18 months. I telecommute - but I'm required to be in this specific area (otherwise I would certainly telecommute from a lower cost of living area). Looking back, maybe I should have played roulette and waited for a few extra months for a comparable job in a lower cost of living area, but I wanted to pay off my small loans and get life started. The training benefits by far make up for the lackluster pay right now.
In the interest of saving money - I opted not to purchase a vehicle after moving to this area. The problem is that I've become a bit recluse not owning a car - public transportation is not available and I don't have family or any social life in this city. I've walked to all 3 coffee shops and run all the streets of this area. When I took this job - I thought I would maximize my savings by agreeing to telecommute and not having a car. I knew that public transit was non-existent, but I underestimated my social needs. I hate to say it, but I'm terribly lonely.
I go back and forth regarding my intentions to buy a car to broaden and increase my social opportunities - going 15 miles south greatly increases my social options. On one hand, buying a car involves car payments, general depreciation in value, car insurance, maintenance, etc. On the other hand, I'm miserable not leaving a square mile for weeks. No one in this city knows that I exist, I'm not dating and I'm not exactly sure why I'm saving money anymore.
I've talked to my parents and they are blown away that I'm paying $900 in rent that they are quick to mutually agree that buying a car is irresponsible. I'm not sure if they understand housing prices are high in the city and it is going to stay that way. Buying a house here is feels even more daunting. Do single people actually buy a 500k house? Sometimes I think about moving back to the country side close to the family, buying a 100k house and just farming. I'm not keen on changing my job situation as I've only been here 18 months and they are continually putting me through valuable training that will greatly improve my future job prospects. While I'm only at 78k, I'm pretty sure I can end up in the mid 90k within 5 years.
I'm not quite sure what my savings rate will be with my raise. But here are my current stats.
no debt
401k - 28k
Roth IRA - 4k
Checking/Savings 35k
no investments yet
I feel like I'm barely treading water here - which is a little silly. Can someone give me a "virtual" gold star or something? Reading some of these case studies on MM overwhelm me in a way - I feel so behind not having made any headway on adult milestones of having a partner. a car or a house. Furthermore, the retirement cost is proportionally significantly higher for a single female than folks with a partner.
Long term goal - never rely on someone else financially. And not be lonely. I'm not sure what I'm looking for here - someone to tell me that my retirement is not in jeopardy just because I spent 10-15k on a used certified car. Or how to balance long term goals (a house?) with short term goals (a car) to keep myself from going crazy. I think it would help if I had a number in mind - like, once I reached XXX net worth, it is ok to purchase a car? I'm not sure I'll ever be able to afford a house in this area with a single income? Would a reasonable goal for me to buy a car this year, focus on maximizing my career field/opportunities and relocate to a lower cost of living area once I can find a comparable position?
Thank you! Just had to get this off my chest to people who may think about similar things?